Motown's Mental Breakdown

As unions and the city council resist reform, bankruptcy looms.

Updated Dec. 5, 2012 12:01 a.m. ET

The political gospel according to Democrats is that the auto bailout saved Detroit. If only it were so. Alas, costly labor agreements have driven Motown like GM and Chrysler to disrepair. Perhaps the only fix now is to let Detroit go bankrupt.

Michigan lawmakers have kept Detroit on life support for the past six months and may need to do so indefinitely barring a miraculous economic recovery. The city will run out of cash this month unless the state releases $30 million in bond proceeds, which are being held in escrow...